Trade Ideas: HPQ, CSCO, BAC

Out of favor stocks still need some love and if played correctly, these plays can return huge amounts of money in a short amount of time. The key is to catch an out of favor stock at the dead low support area, prior to a gigantic bounce. This type of returns can be over 10% in days and over the longer term, much, much more. With the market in a rare down cycle, it is important to find the appropriate levels and wait patiently. Below are key stocks and their buy levels.

After warning of a “tough” quarter just a couple days ago, Hewlett-Packard Company (NYSE:HPQ) has dropped dramatically. The stock broke through support at $37.35 and is currently trading at $36.08, -0.83 (-2.25%). Many Wall Street traders and investors are wondering where Hewlett-Packard will be a buy? Based on the chart, the buy level will be at $33.85. A sharp bounce should occur off this level, maybe even a long term low will be in place.

Cisco Systems, Inc. (NASDAQ:CSCO) is another company that has had many problems producing and meeting expectations. Wall Street has continually been disappointed with their earnings reports and guidance. In the latest quarter, restructuring has begun, fostering hopes of some sort of return to glory. Cisco is inching below major support today. Should the price not rebound and continue lower, it is destined for $14.00. In this range, a tremendous buy would be initiated on the stock based on pure technical analysis. While this level is far away, never underestimate a stock or a market in punishing a habitual loser. The masters in the market will lay in wait for this one at that level.

Bank of America Corporation (NYSE:BAC) is another beaten down stock. This financial firm was trading over $15.00 per share in January. It is now currently trading at $11.74, -0.16 (-1.34%). Based on its recent price action, Bank of America is heading lower. Where is it going to bottom? The answer to that is $10.95. There is a beautiful double bottom base at that point which will act as a near term and possibly a long term bottom. The risk to reward will be highly in the bulls favor at this price.

Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial advisor, helping clients get their financial houses in order. While helping others gain financial independence, he continued to study the day trading and swing trading world, developing a unique market philosophy and proprietary methods. Following his work in the financial sector, Gareth went on to trade alongside professional traders. Unable to tolerate the hype of Wall Street any longer and having an amazing ability to profit using his developed techniques, Gareth Soloway decided to partner with his friend and colleague, Nicholas Santiago to form InTheMoneyStocks.com. Chief Market Strategist Gareth Soloway serves as the president and CFO of InTheMoneyStocks.Com.